# Question: Compute the following cash flows for High Seas Nautical Company

Compute the following cash flows for High Seas Nautical Company for the past year:
1. The beginning balance of Retained Earning was \$ 139,000, while the end of the year balance of Retained Earnings was \$ 178,000. Net income for the year was \$ 61,000. No dividends payable were on the balance sheet. How much was paid in cash dividends during the year?
2. The beginning and ending balances of the Common Stock account were \$ 212,000 and \$ 271,000, respectively. Where would the increase in Common Stock appear on the statement of cash flows?
3. The beginning and ending balances of the Treasury Stock account were \$ 51,000 and \$ 75,000, respectively. Where would the increase in Treasury Stock appear on the statement of cash flows?
4. Property, Plant, and Equipment (net) increased by \$ 14,000 during the year to have a balance of \$ 159,000 at the end of the year. Depreciation for the year was \$ 17,000. Acquisitions of new plant assets during the year totaled \$ 39,000. Plant assets were sold at a loss of \$ 2,000.
a. What were the cash proceeds from the sale of plant assets?
b. What amount would be reported on the investing section of the statement of cash flows? Would it be a source of cash or a use of cash?
c. What amount would be reported on the operating section of the statement of cash flows? How would it be presented?

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